Chapter 1 Flashcards
An example of shortage is limited amounts of
Food available because the trucks carying it are on strike
The government of a country mayst make a decision between increasing military spending and subsidizing wheat farms. His kind of decision is a
Guns or bitter issue
A nations automakers install new robotic machinery to build cars. Now, cars take only a day to make, and he factories can produce many more cars than before. This is an example is growth cause by
Technology.
What does a production possibilities frontier show?
The maximum amour that an economy can produce
On example of an entrepreneur is
An artist who runs a business painting murals in office buildings and restaurants
What is a factory building an example of?
Physical capital
The purpose of a production possibilities graph is to
Show alternative ways to use an economy’s resources.
What are all goods and services scarce?
All resources are scarce
The lack of which of the following represents a scarcity?
Enough worker to finish two jobs because there is a limited supply of workers
What can decision making grid do?
Help you determine some of the opportunity cost for your decision
How would you describe an economy that uses its resources to make he greatest possible number of goods and services?
Efficient
The opportunity cost of a decision can be examined by using a
Production possibilities graph
An efficient economy is one that
Uses it’s resources to make the most goods and services
The community of Desertville traditionally produces a large number of tires and a small amount of kiwi fruit, Kiwis are become increasingly popular, and Desertville has decided to expand kiwi cultivation and decrease tire manufacturing. According I the law of increasing cost,
The cost of producing kiwis will increase
Human capital includes
A taxi drivers knowledge of he city streets
Any resource that are made by humans and used to create over goods and services are called
Capital
What are the opportunity cost of a decision?
The most desirable alternative given up for the decision
Which of he following is the kind of decision hat can be made at he margin?
Whether or not too hire new workers
Which of the following makes someone an entrepreneur?
Running a service that hires people to install sprinkler systems in lawns
A country’s production possibilities increase because the available workers become more skilled at using a computer. His is an example of growth cased by
Technology
The government of a country must make a decision between spending money on a hospital or spending the same amount on border security. What kind of decision is this?
Guns or butter
A company that makes baseball caps is underutilizing its resources. What does this mean?
The company is producing fewer caps than it could be.
The law of increasing cost means that when an economy increases the production of one item
The production cost will increase also
